
Quiz 3 - Key Answers
Legal Agreements: Internal/Intercompany Agreements
Question 1
Which of the following best describes the key difference between an Investment Agreement and a Funding Agreement?
-
A. Investment Agreements typically focus on repayment obligations, while Funding Agreements depend on company performance.
-
B. Investment Agreements provide financing with fixed-rate repayment obligations, while Funding Agreements offer returns based on a company’s success.
-
C. Funding Agreements often include fixed repayment terms, while Investment Agreements rely on returns like dividends or shares value increase based on company performance.
-
D. Both agreements allow investors to receive a fixed return, independently of a company’s growth or profitability.
-
E. Both agreements are solely performance-based and contingent on achieving financial growth.
Question 2
Which type of agreement typically includes repayment obligations with fixed terms, regardless of the company’s performance?
-
A. Investment Agreement.
-
B. Funding Agreement.
-
C. Loan Agreement.
-
D. Reseller Agreement.
Question 3
An agreement in which a sponsor or financer expects returns in the form of dividends or an increase in share value, rather than a fixed repayment, would be best described as:
-
A. Funding Agreement.
-
B. Investment Agreement.
-
C. Sponsorship Agreement.
-
D. Share Purchase Agreement.
Question 4
Which type of agreement is most likely to support project-specific needs or short-term financing?
-
A. Investment Agreement.
-
B. Funding Agreement.
-
C. Service Agreement.
-
D. Business Investment Contract.
-
E. Reseller Agreement.
Question 5
Which type of agreement involves a third party who introduces new clients to a company, but does not handle the resale of the company’s products or services?
-
A. Reseller Agreement.
-
B. Introducer Agreement.
-
C. Service Agreement.
Question 6
Which agreement is typically focused on the resale of a company’s products or services, allowing a third party to act as an intermediary who directly sells to clients?
-
A. Introducer Agreement.
-
B. Reseller Agreement.
-
C. Service Agreement
Question 7
Which type of agreement would be most appropriate for a client seeking outsourced payroll services, such as wage calculation and payroll data access, without extensive accounting services?
-
A. Payroll Bureau Agreement.
-
B. Accounting Services Agreement.
-
C. Payroll Accounting Agreement
Question 8
In which type of agreement the primary focus is on providing professional services that ensure financial record accuracy, regulatory compliance and financial reporting, rather than specific payroll processing tasks?
-
A. Payroll Bureau Agreement.
-
B. Accounting Services Agreement.
-
C. Payroll Accounting Agreement.
Question 9
Which type of agreement is primarily used for facilitating bulk payment processing for payroll purposes, allowing multiple payments to be handled in a single transaction?
-
A. Banking Services Agreement.
-
B. Payroll Bureau Agreement.
-
C. Operations Commission Agreement.
Question 10
Which type of agreement would be most likely used as a MOAT Agreement for business financing purposes?
-
A. Professional Services Agreement.
-
B. Investment Agreement.
-
C. Funding Agreement.